May 2, 11:18 AM

Robinhood Q1 2025 Crypto Revenue Drops 30%, Payment for Order Flow Hits 63%; JPMorgan Eyes $245-$250 Rally, Private Markets Access Planned

Robinhood Markets Inc. reported a 30% decline in its cryptocurrency revenue for the first quarter of 2025, despite a doubling in notional trading volume year-over-year. CEO Vlad Tenev highlighted strong product development across key areas, including futures and prediction markets, which saw over 4.5 million contracts traded in April. Robinhood's revenue reliance on payment for order flow increased to 63% in Q1 from 52% the previous year, with Citadel, B2C2, and Wintermute accounting for 35% of that flow. The company is actively diversifying its business, with nine segments each generating over $100 million annually and new ventures such as strategies, banking, and BitStamp expected to contribute later this year. Robinhood aims to reduce dependence on crypto revenue amid broader market pullbacks affecting coins like Bitcoin and Ethereum. The firm is also pursuing initiatives to open private markets to 25 million retail investors, offering access to private companies such as SpaceX and OpenAI. Meanwhile, JPMorgan Chase & Co. shares have shown technical strength, breaking higher above their 100-day moving average and trading in a bullish flag pattern, with potential to rally above the $245-$250 range. Analysts at Citi and Rosenblatt have maintained buy ratings on Coinbase Global Inc. but cut price targets due to trading softness and market pressures. Robinhood is positioning itself as a comprehensive financial operating system for retail investors, challenging traditional brokerages like Charles Schwab and Interactive Brokers.